SHELL PLC
111 159 1,032 Proceeds from sale of joint ventures and associates 1,240 2,599
7 139 55 Proceeds from sale of equity securities 281 469
111 112 224 Interest received 532 911
622 588 918 Other investing cash inflows 3,239 2,921
(848) (665) (1,255) Other investing cash outflows (3,232) (3,563)
(5,406) (2,833) (4,862) Cash flow from investing activities (13,277) (15,779)
Net increase/(decrease) in debt with maturity period
(299) (176) (406) within three months (63) (308)
Other debt:
2,048 4,745 8,758 -- New borrowings 23,033 11,185
(4,862) (2,688) (2,731) -- Repayments (17,385) (14,292)
(1,153) (831) (1,232) Interest paid (4,105) (4,649)
495 419 (124) Derivative financial instruments 1,157 (48)
(2) -- 2 Change in non-controlling interest (42) --
Cash dividends paid to:
(1,307) (1,236) (3,725) -- Royal Dutch Shell plc shareholders(1) (7,424) (15,198)
(69) (65) (133) -- Non-controlling interest (311) (537)
-- -- (2,848) Repurchases of shares (1,702) (10,188)
Shares held in trust: net sales/(purchases) and dividends
(184) 1 (618) received (382) (1,174)
(5,333) 169 (3,057) Cash flow from financing activities (7,224) (35,209)
567 36 289 Currency translation differences relating to cash 172 124
and cash equivalents
(3,884) 7,775 2,637 Increase/(decrease) in cash and cash equivalents 13,775 (8,686)
35,714 27,939 15,417 Cash and cash equivalents at beginning of period 18,055 26,741
31,830 35,714 18,055 Cash and cash equivalents at end of period 31,830 18,055
--------- --------- --------- -------------------------------------------------------------------- ---------- ----------
1. Cash dividends paid represents the payment of net dividends
(after deduction of withholding taxes where applicable) and payment of
withholding taxes on dividends paid in the previous quarter.
Page 14
ROYAL DUTCH SHELL PLC 4TH QUARTER 2020 AND FULL YEAR
UNAUDITED RESULTS
-----------------------------------------------------
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
These unaudited Condensed Consolidated Financial Statements of Royal
Dutch Shell plc ("the Company") and its subsidiaries (collectively
referred to as "Shell") have been prepared on the basis of the same
accounting principles as those used in the Annual Report and Accounts
(pages 190 to 238) and Form 20-F (pages 142 to 189) for the year ended
December 31, 2019 as filed with the Registrar of Companies for England
and Wales and the US Securities and Exchange Commission, respectively,
and should be read in conjunction with these filings.
The financial information presented in the unaudited Condensed
Consolidated Financial Statements does not constitute statutory accounts
within the meaning of section 434(3) of the Companies Act 2006 ("the
Act"). Statutory accounts for the year ended December 31, 2019 were
published in Shell's Annual Report and Accounts, a copy of which was
delivered to the Registrar of Companies for England and Wales, and in
Shell's Form 20-F. The auditor's report on those accounts was
unqualified, did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying the report
and did not contain a statement under sections 498(2) or 498(3) of the
Act.
Key accounting considerations, significant judgements and estimates.
Future commodity price assumptions and management's view on the future
development of refining margins represent a significant estimate and
both were subject to change in the second quarter 2020, resulting in the
recognition of impairments in the second quarter 2020. These assumptions
continue to apply for impairment testing purposes in the third and
fourth quarter 2020.
After the finalisation of the operating plan in the fourth quarter 2020,
the overall deferred tax position was reviewed and deferred tax
positions recognised were updated in line with the operating plan.
The refinery portfolio is expected to be transformed during the energy
transition from fifteen sites into six high-value energy and chemical
parks integrated with Chemicals. Further evaluation and decisions on
assets resulted in the recognition of impairment charges and provisions
for decommissioning & restoration, onerous contracts and restructuring
in the fourth quarter 2020.
2. Segment information
With effect from January 1, 2020, Shell's reporting segments consist of
Integrated Gas, Upstream, Oil Products, Chemicals and Corporate,
reflecting the way Shell reviews and assesses its performance. Oil
Products and Chemicals businesses were previously reported under the
Downstream segment. Oil sands mining activities, previously included in
the Upstream segment, are reported under Oil Products. Comparative
information has been reclassified.
Segment earnings are presented on a current cost of supplies basis (CCS
earnings), which is the earnings measure used by the Chief Executive
Officer for the purposes of making decisions about allocating resources
and assessing performance. On this basis, the purchase price of volumes
sold during the period is based on the current cost of supplies during
the same period after making allowance for the tax effect. CCS earnings
therefore exclude the effect of changes in the oil price on inventory
carrying amounts. Sales between segments are based on prices generally
equivalent to commercially available prices.
With effect from January 1, 2020, additional contracts are classified as
held for trading purposes and consequently revenue is reported on a net
rather than gross basis. The effect on revenue for the fourth quarter
2020 is a reduction of $10,469 million (Q3 2020: $11,478 million, full
year 2020: $46,289 million).
Page 15
ROYAL DUTCH SHELL PLC 4TH QUARTER 2020 AND FULL YEAR
UNAUDITED RESULTS
-----------------------------------------------------
INFORMATION BY SEGMENT
Quarters $ million Full year
Q4 2020 Q3 2020 Q4 2019 2020 2019
Third-party
revenue
8,010 7,684 11,006 Integrated Gas 33,287 41,323
1,576 1,670 2,604 Upstream 6,767 9,482
31,001 31,823 67,354 Oil Products 128,717 280,460
3,386 2,831 3,033 Chemicals 11,721 13,568
16 13 9 Corporate 51 45
Total third-party
43,989 44,021 84,006 revenue(1) 180,543 344,877
Inter-segment
revenue(2)
1,098 864 1,117 Integrated Gas 3,410 4,280
5,860 5,111 9,416 Upstream 21,564 35,735
1,733 1,547 1,629 Oil Products 6,213 7,819
784 715 854 Chemicals 2,850 3,917
-- -- -- Corporate -- --
CCS earnings
20 (151) 1,897 Integrated Gas (6,278) 8,628
(2,091) (1,110) (855) Upstream (10,785) 3,855
(1,775) 2,092 1,183 Oil Products (494) 6,139
367 131 (78) Chemicals 808 479
(954) (739) (1,151) Corporate (2,952) (3,273)
Total CCS
(4,434) 222 996 earnings (19,702) 15,827
---------- --------- --------- ----------------- ---------- ---------
1. Includes revenue from sources other than from contracts with
customers, which mainly comprises the impact of fair value accounting of
commodity derivatives. Fourth quarter 2020 included income of $114
million (Q3 2020: $1,803 million income; full year 2020: $10,008 million (MORE TO FOLLOW) Dow Jones Newswires
02-04-21 0216ET
